- The USD/CAD quotes laterally about 1,3850 after falling to a minimum of six months around 1,3800
- Trump’s attacks on the independence of the Fed and Powell weigh on the feeling of the USD
- Technical structure remains bassist, resistance seen about 1,3805 and 1,3935
The USD/CAD torque is at a dead point near the area of ​​1,3850 on Tuesday, struggling to extend its rebound after printing a new minimum of six months closer to the 1,3800 area. The broader US dollar continues to the defensive after two weeks of strong losses, pressed by political risks and speculation about changes in the leadership of the Federal Reserve. The critic of President Trump to Jerome Powell and the suggestions of a possible dismissal have intensified the concerns about the independence of the Fed, which has further decreased confidence in the US dollar.
The American dollar index (DXY) recorded a modest rebound to the 98.50 zone after touching a minimum of three years in 98.00, but the general feeling is still fragile. Investors are prepared for deeper losses amid persistent tensions around trade between the US and China, Powell’s autonomy and growing doubts about the USD reserve status. Meanwhile, the Canadian dollar remains stable, backed by the expectations that the Bank of Canada will maintain a neutral posture in its monetary policy.
From a technical perspective, the USD/CAD maintains a bearish bias. The torque is currently being negotiated around 1,3800, within a narrow range of 1,3781–1.3852. The Relative Force Index (RSI) remains about 31, suggesting a neutral momentum, while the convergence/divergence indicator of mobile socks (MACD) and the Momentum indicator are both showing sales signals. The main mobile socks, including the simple mobile average (SMA) of 20 days (1,4103), 100 days (1,4278) and 200 days (1,4006), they all have a descending slope, confirming a bearish trend. Additional resistance is observed in 1,3805, 1,3934 and 1,3938.
Unless the political tensions or economic data of the United States change the feeling, it is likely that the USD/CAD remains limited below the 1.3930–1,3940 area, with the biased risk towards an additional fall below 1,3800.
USD/CAD DAILY GRAPH
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
